Why New York Investors Rely on Hard Money for New Construction
The differences between a conventional mortgage and a hard money loan for new construction are significant. With a conventional construction loan, borrowers spend most of their time trying to explain their project to the lender, and jumping through documentation and regulatory hoops. While this might not be a big deal to traditional homebuyers, this process typically does not work for investors with time-sensitive and unconventional scenarios. As an investor or contractor, you need a loan that will meet your needs on time every time, from initial underwriting through draw management and payoff.
Hard money loans are often the better alternative for new construction because they offer short-term financing with flexible underwriting standards that were created specifically for your type of project. This type of loan focuses more on the project itself and your experience as an investor, rather than the traditional underwriting criteria of a conventional loan like credit score and debt-income ratio. Our common sense underwriting means your construction project can be a approved and funded very quickly, but will rely on the investor to be well-prepared with a detailed scope of work and project plans.
The Construction Loans New York Investors Prefer
Hard money loans are a staple in the construction industry, and knowing that you have the right lender for your project is key. To make sure we exceed your needs with each construction project, ABL prioritizes personal service and loan options as unique as your design. A few features of our new construction loans include:
- Loans from $75,000 to $3 million
- Financing for up to 60% of land aquisition and 100% of construction
- Only pay interest on drawn amounts for escrows over $100,000
- Rates as low as 8% to 9%
- Zero-point loan available
- Preliminary approval in 24 hours
- Full service construction draw management team
See how simple our process is for yourself by calling to speak with one of our loan officers. After a short discussion about your project and your experience as a real estate investor, we’ll quickly tell you if this sounds like a project we can help you finance. If you meet our requirements and are ready to move forward with the project, we typically close loans within 10 days. You could be moving forward with your new development in no time.
New construction is a significant investment with big potential profits for investors who know just what to do. To find out if your project qualifies for a hard money loan with Asset Based Lending, contact us today.